27th Nov 2013 10:09
LONDON (Alliance News) - Property investment group Shaftesbury PLC reported an increase in pretax profit for the full year, as an influx of tourists patronised its portfolio of shops, restaurants and cafés in central London.
The company whichR owns over 250 shops in Carnaby Street and Covent Garden posted pretax profit of GBP241.7 million in the year ended September 30, up from GBP94.8 million a year earlier.
This was boosted in part by a number of acquisitions and a GBP37.0 million gain on the change in fair value of derivative financial instruments, compared with a GBP28.2 million loss a year earlier.
Shaftesbury added to its portfolio in Soho and Covent Garden.
Net property income also increased 3.1% to GBP73.2 million from GBP71.0 million in 2012.
The portfolio is now valued at GBP2.05 billion, delivering a revaluation surplus of GBP174.3 million, which increased the European Public Real Estate Association (EPRA) net asset value per share climbed 13.9% to GBP5.67 pence from GBP4.98 last year.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
Shaftesbury said it had an "unusually" high level of redevelopment and refurbishment activity during the year, undertaking 50 projects totaling around 165,00 square feet, which represented nearly 9% of the company's total floor area.
The property firm said these schemes, which include two large projects in Carnaby Street, will deliver increased rental income in the coming years.
However, the construction work resulted in higher vacancy levels - albeit in the short term - which has tempered growth in income and profits in 2013, it said.
Despite this, Shaftesbury has benefited from London's stature as one of the "world's leading global cities."
"Following the successful staging of the 2012 Olympics and Paralympics, which showcased London across the world, there has been a noticeable increase in domestic and international visitors throughout the year," Chief Executive Brian Bickell said in a statement.
"Coupled with a gradual recovery in consumer confidence in the UK and abroad, visitor spending is increasing, encouraging retailers, restaurateurs and other leisure-related businesses to establish new ventures, particularly in and around the West End," he added.
The board declared a final dividend of 6.25 pence, up from 6.05 pence.
Shaftesbury shares were up 2.0% at 627.50 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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